CHAPTER 1 Introduction to Accounting and Business
Prob. 1–3A (Concluded)
4. (Optional)
Cash flows from operating activities:
Cash received from customers $110,000
Deduct cash payments for expenses
and payments to creditors* 112,400
RELIANCE FINANCIAL SERVICES
Statement of Cash Flows
For the Month Ended July 31, 2016
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–4A
1.
=+
+=+ – + –– –– –
(a) + 25,000 + 25,000
(b) + 1,850 + 1,850
Bal. 25,000 1,850 1,850 25,000
(c) – 1,200 – 1,200
Bal. 23,800 1,850 650 25,000
(d) + 41,500 + 41,500
Owner’s Equity
Supplies
Accts.
Payable
Liabilities
Pat Glenn,
Capital
Sales
Comm.
Salaries
Exp.
Supplies
Exp.
Misc.
Exp.
Rent
Exp.Cash
Pat Glenn,
Drawing
Auto
Exp.
Assets
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–4A (Concluded)
2.
Sales commissions $41,500
Expenses:
Salaries expense $5,000
Rent expense 3,600
Pat Glenn, capital, July 1, 2016 $0
Investment on July 1, 2016 $25,000
Net income for July 27,350
Cash $48,050 Accounts payable $ 650
Supplies 950
HALF MOON REALTY
Income Statement
For the Month Ended July 31, 2016
HALF MOON REALTY
Statement of Owner’s Equity
For the Month Ended July 31, 2016
HALF MOON REALTY
Balance Sheet
July 31, 2016
Assets Liabilities
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–5A
1. = +
Cash +++
=+
Supplies Land
Owner’s Equity
Accounts
Payable
Assets
Accounts
Receivable
Liabilities
Joel Palk, Capital
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–5A (Continued)
2. = +
++
+
=+ –
Bal. 45,000 93,000 7,000 75,000 40,000 180,000
(a) + 35,000 + 35,000
Bal. 80,000 93,000 7,000 75,000 40,000 215,000
(e) + 2,500 + 2,500
Bal. 56,125 93,000 9,500 125,000 42,500 215,000
(f) – 22,800 – 22,800
Bal. 33,325 93,000 9,500 125,000 19,700 215,000
(g) + 84,750
Owner’s Equity
Accts.
PayableCash
Assets
Accts.
Rec.
Liabilities
Supplies Land
Joel Palk,
Capital
Joel Palk,
Drawing
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–5A (Continued)
+–
–
–– – – –
Bal.
(a)
Bal.
(b)
Owner’s Equity (Continued)
Utilities
Exp.
Supplies
Exp.
Dry
Cleaning
Revenue
Dry
Cleaning
Exp.
Wages
Exp.
Rent
Exp.
Truck
Exp.
Misc.
Exp.
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–5A (Continued)
3.
Dry cleaning revenue $116,875
Expenses:
Dry cleaning expense $29,500
Wages expense 7,500
Joel Palk, capital, July 1, 2016 $180,000
Additional investment during July $35,000
Net income for July 63,775
Cash $ 95,325 Accounts payable $ 49,200
Accounts receivable 89,750
Supplies 5,900
Balance Sheet
July 31, 2016
Assets Liabilities
Owner’s Equity
D’LITE DRY CLEANERS
Income Statement
For the Month Ended July 31, 2016
D’LITE DRY CLEANERS
Statement of Owner’s Equity
For the Month Ended July 31, 2016
D’LITE DRY CLEANERS
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–5A (Concluded)
4. (Optional)
Cash flows from operating activities:
Cash received from customers* $120,125
Deduct cash payments for expenses
and payments to creditors** 42,800
Net cash flows from operating activities $ 77,325
Cash flows used for investing activities:
D’LITE DRY CLEANERS
Statement of Cash Flows
For the Month Ended July 31, 2016
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–6A
a. Fees earned, $750,000 ($275,000 + $475,000)
b. Supplies expense, $30,000 ($475,000 – $300,000 – $100,000 – $20,000 – $25,000)
c. Dakota Rowe, capital, April 1, 2016, $0; Wolverine Realty was organized on
April 1, 2016.
d. Net income for April, $275,000 from income statement
e. $650,000 ($375,000 + $275,000)
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–1B
1.
Assets = +
+ +=+ –+ –––– –
(a) + 50,000 + 50,000
(b) + 4,000 + 4,000
Bal. 50,000 4,000 4,000 50,000
Bal. 52,550 4,000 1,700 50,000 13,800 – 5,000 – 2,500 – 1,150 – 300
(h) – 1,300 – 1,300
2. Owner’s equity is the right of owners to the assets of the business. These rights are increased by owner’s investments and revenues and decreased
by owner’s withdrawals and expenses.
Misc.
Exp.
Rent
ExpenseCash
Amy
Austin,
Drawing
Supplies
Expense
Owner’s Equity
Accts.
Rec. Supplies
Accts.
Payable
Liabilities
Amy Austin,
Capital
Fees
Earned
Salaries
Expense
Auto
Exp.
1.
Fees earned $875,000
Expenses:
Wages expense $525,000
Rent expense 75,000
2.
Harper Borg, capital, May 1, 2015 $180,000
Net income for the year $200,000
3.
Cash $146,000 Accounts payable $ 25,000
Accounts receivable 210,000
For the Year Ended April 30, 2016
WILDERNESS TRAVEL SERVICE
Balance Sheet
April 30, 2016
Assets Liabilities
WILDERNESS TRAVEL SERVICE
Income Statement
For the Year Ended April 30, 2016
WILDERNESS TRAVEL SERVICE
Statement of Owner’s Equity
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–3B
1.
Fees earned $125,000
Expenses:
Salaries expense $58,000
Rent expense 27,000
2.
Jose Loder, capital, August 1, 2016 $0
Investment on August 1, 2016 $75,000
Net income for August 10,900
$85,900
3.
Cash $38,000 Accounts payable $ 3,000
BRONCO CONSULTING
Income Statement
For the Month Ended August 31, 2016
BRONCO CONSULTING
Statement of Owner’s Equity
For the Month Ended August 31, 2016
BRONCO CONSULTING
Balance Sheet
August 31, 2016
Assets Liabilities
4. (Optional)
Cash flows from operating activities:
Cash received from customers $ 92,000
Deduct cash payments for expenses
BRONCO CONSULTING
Statement of Cash Flows
For the Month Ended August 31, 2016
1.
=+
+=+ –+ –––– –
(a) + 24,000 + 24,000
(b) – 3,600 – 3,600
Bal. 20,400 24,000 – 3,600
(c) – 1,950 – 1,350 – 600
Owner’s Equity
Supplies
Accts.
Payable
Liabilities
Maria
Adams,
Capital
Sales
Comm.
Salaries
Exp.
Supplies
Exp.
Misc.
Exp.
Rent
Exp.Cash
Maria
Adams,
Drawing
Auto
Exp.
Assets
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–4B (Concluded)
2.
Sales commissions $19,800
Expenses:
Rent expense $3,600
Salaries expense 2,500
Maria Adams, capital, April 1, 2016 $0
Investment on April 1, 2016 $24,000
Net income for April 10,850
Cash $31,500 Accounts payable $ 450
Supplies 300
Balance Sheet
April 30, 2016
Assets Liabilities
CUSTOM REALTY
Income Statement
For the Month Ended April 30, 2016
CUSTOM REALTY
Statement of Owner’s Equity
For the Month Ended April 30, 2016
CUSTOM REALTY
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–5B
1. Liabilities +
Cash
Accounts
Receivable Supplies Land
Accounts
Payable +Beverly Zahn, Capital
=
Owner’s Equity
+
Assets
+
+
=